Final amendment passed to the TILA-RESPA Integrated Disclosure rule.

On Friday, July 7, 2017, the Consumer Financial Protection Bureau (CFPB) published the long awaited final amendment to the TILA-RESPA Integrated Disclosure rule. The effective date of the rule is October 10, 2017, with a mandatory compliance date of October 1, 2018.

The final amendment does not contain any changes to the disclosure of title insurance premium nor does it contain any changes to the "option" for owner's title insurance. Further, there are no additional cure provisions for errors made in the loan estimate or closing disclosure (CD), despite feedback that errors are creating a liquidity problem in the secondary market. The CFPB expressed concerns that further definition of cure provisions would undermine incentives for compliance with the rule.

With regard to sharing the CD, the CFPB clarifies in the amendment that the CD, whether combined or separate forms, meets the Gramm-Leach-Bliley Act (GLBA) exception in sections 502(e)(1) and 509(7)(A), unless the creditor’s closing instructions prohibit the settlement agent from providing such disclosure to other parties. However, it is still a best practice to obtain borrower and seller authorization for such disclosure. It’s also important to remember that some states have laws with stricter requirements than GLBA, which must be complied when sharing disclosures and private financing information.

On October 3, 2015, the Consumer Financial Protection Bureau’s mortgage disclosure rule – enacted to make it easier for consumers to shop for mortgages and protect them from costly surprises at their closing by integrating consumer disclosures – went into effect. We’re taking the changes brought about by the rule as an opportunity to provide better transparency and service to all parties involved in the real estate transaction. We invite you to use this site, and us, as a resource to help you as the real estate and mortgage industries adjust to the new changes.

Stewart Blog - CFPB Articles

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